Rivian’s $250 Million IPO Investor Accord Gets First Court Nod

Rivian Automotive Inc.‘s $250 million settlement earned a federal judge’s initial blessing to resolve investor allegations the electric-vehicle maker hid inevitable price hikes surrounding its initial public offering.

Judge Josephine L. Staton preliminarily approved the agreement Thursday in the US District Court for the Central District of California. The class action alleged false and misleading statements in Rivian’s IPO paperwork and a 2021 earnings calls, saying EV executives knowingly hid material costs for vehicles far surpassed their sales price which made price increases inevitable.

• The suit, under the federal law governing stock issuances, also alleged Rivian directors and executives ...